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The vote took part ahead of the 1999 Israeli general election, held after Netanyahu's governing coalition collapsed. There had been several defections from the party leading up to the leadership race, including Benny Begin and Dan Meridor, who both defected to lead their own parties in the 1999 general election.
Moshe Arens was a veteran of the Likud party that had formerly been a mentor to Netanyahu and had fully supported Netanyahu's candidacy in the 1993 Likud leadership election. However, Arens had broken away from Netanyahu after Netanyahu became prime minister in 1996. Arens, and several other veterans of Likud, began to distrust Netanyahu after he became prime minister, disapproving of many of the choices Netanyahu had made for political appointees. Arens ended six years of political retirement to challenge Netanyahu for the leadership of Likud. He declared that he was the only one that could, "stop the internal hemorrhaging in the Likud." Political analysts saw Arens' chances of unseating Netanyahu as being unlikely.
Electorate
The leadership election was open to the party's general membership, which, at the time, numbered at 168,127.
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